Understanding Autotrading in NSE Future markets

Currently NSE allows traders to do two types of autotrading from your Trading Terminal. Semiautomated trading for Retail Traders and Full Automated trading for Dealers with Nest Trading platform(Dealer Terminal).

For Retail Clients: The Buy/Sell signal from your Trading Analysis Terminal is converted as an order and reflects on your Nest Trading Terminal. The client will have to authorize this order after reviewing and this is placed on the exchange (semi-automated).

For Dealers: The Buy/Sell signal from your Trading Analysis Terminal is converted as an order and placed automatically on your Nest Trading Terminal(Dealer Terminal). This can be completely automated or semi-automated based on your requirement. You can determine if the order is limit/market and place a stop loss at the same time completely automated.

How to Get a Dealer Terminal?

To completely automate you will need a dealer terminal. Exchanges don’t allow completely automated platform on a retail terminal.

To get a dealer terminal for NSE/BSE Segments, you will need to become an authorized person with your broker and also clear the NISM-Series-VIII – Equity Derivatives Certification Examination . Whereas there is no such procedure for MCX. There will be a one time cost to register as an Authorized person(need to check with your broker) and a rental for dealer terminal of Rs 250/segment/exchange.

Does the Exchange has to provide the Approval for Full Algo Trading?

Yes you need to perform a UAT test with the NSE exchange to get your algo approved.

Process involved in getting a Approval

1)First your Strategy should be validated by a CA. This will cost around Rs 2500/strategy.
2)The strategy has to now be tested on the exchange UAT (User Acceptance Testing) site and by participating in the mock trading sessions conducted by the exchange. There would be a rental charge of Rs 2500/month charged for using the simulators.
3)One the demo is provided to the exchange and approved, you can automate the strategy. The entire process can take up to 1 month.
4)Cost of automation if you are using AmiBroker is Rs 6,000/month(Omnesys API for Dealer terminal) and no one time cost.
5)Cost of automation if you are using a custom front end is Rs 12,000/month and a one-time cost of Rs 30,000. Currently Omnesys Dealer API’s which send order to your brokers Order Management Systems supports Java, .NET, COM and XML APIs.

When Autotrading in NSE Exchange is illegal?

It would be considered as illegal if you are doing fully automated trading

What Platforms currently Supports Autotrading?
TradeTiger from Sharekhan, Nest Plus from Omnesys, NSE Now

Which Trading Analysis Software Supports Autotrading?
Currently Amibroker Supports autotrading with a Trading Plugin from Globaldatafeeds and it supports Tradetiger and Nest Plus Trading Terminals.

Does my Broker Supports Algo trading?

A broker to enable algo trading for his client he has to keep 50 lakhs (Base minimum capital) as a deposit with NSE . Check with your broker if he placed Base minimum capital with the exchange

Does Marketcalls Provides Assistance for Autotrading?
Currently we are not providing assisting clients doing in autotrading segment. If you have any autotrading queries you can mail to rajandran@marketcalls.in

About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

Comments

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